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APR Energy blots copy-book

Slowing growth and delayed accounts weigh heavily on stock market newcomer APR Energy's shares
March 21, 2012

Shares in APR Energy slumped 20 per cent as its accounts were delayed and growth missed targets only six months after its stock market flotation. This is poor form for a newly listed company and we can no longer recommend buying the shares.

IC TIP: Hold at 840p

Managers say the accounts, which were due to be released on Thursday, would be postponed to 16 April, citing accounting complexities in connection with private equity investments from Soros and Albright funds, and the reverse acquisition of Horizon.

The statement also flagged concerns over the company's growth rate as new order intake from the end of December to 20 March totalled just 64 megawatts (MW). Analysts at Barclays estimate APR needs between 550MW to 630MW in new orders and renewals this year to meet earnings forecasts.

APR still thinks it can hit growth targets for the year, and says it intends to pay a maiden 10p dividend.